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Lori and Dan Own a Small Restaurant as Partners

Question 23

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Lori and Dan own a small restaurant as partners.Dan works several hours a day cooking,waiting on tables,doing the books,and so forth.Dan believes he is entitled to be paid at least a standard wage for all his work since,at the present time,the part-time kitchen helpers earn more than he does! Lori claims Dan is not entitled to anything other than one-half the net profits.Is Lori right?


A) Yes. The UPA states a partner may not collect a "wage" from the partnership business under any circumstances.
B) Yes, as there is no agreement between Lori and Dan allowing for either of them to be paid wages for work done at the restaurant.
C) No. Dan may collect only minimum wage, as required by federal law.
D) No. Dan may collect a fair wage for the work he has performed.

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